Palm Off the “Red Gold:” Headwinds for EU Palm Oil Trade?

In 2023, the European Union (EU) enacted the EU Deforestation Regulation (EUDR), preventing commodities linked with deforestation and forest degradation from entering the EU market. The antideforestation regulation applies to a wide range of products such as palm oil, soy, wood, cocoa, coffee, rubber, and cattle, as well as their derivative products like chocolate, leather, and cosmetics. Malaysia and Indonesia, the world’s top two palm oil producers and exporters, have raised official concerns that EUDR as well as other related EU policies could negatively impact their palm oil exports to the EU. This EBOT discusses the EU regulatory environment and its impact on EU palm oil – known to some as ‘red gold’ – trade.